Glossary: everything you need to know about natural gas

Gas Natural Fenosa, world leader in the supply of natural gas

BAP balancing zone

The section of the transmission network defined by Fluxys in which the charterer must comply with the balancing obligations and in which the imbalances are approved in accordance with the main conditions. Every entry zone and every delivery point is attached to a single balancing zone.

Cogeneration

Cogeneration is the simultaneous production of two energies: thermal energy (heat) and mechanical energy. Production takes place in the same facility. The thermal energy heats and produces hot water. The mechanical energy produces the energy used to run cogeneration. This is frequently natural gas.

Connection Contract (CC)

Contract signed between the transmission network operator and a customer connected to the transmission network to set out the conditions for delivering the gas on site and the technical service conditions.

Daily Routing Capacity (DRC)

Maximum amount of natural gas, in MWh (PCS 0°C) which the distribution network operator commits to delivering on site every day. If this capacity is exceeded, the network operators penalise the consumer.

Day ahead

Price of the gas on day D, based on the closing value on the evening before (D-1) in the hub markets.

Distribution network

Set of distribution facilities together operated by one of the operators, excluding upstream facilities and direct pipelines.

Distribution Routing Contract (DRC)

Contract between a distribution network operator and a charterer for routing services in Belgium, between one or more entry points or one of more delivery points in Belgium.

Gas Natural Fenosa bill

This is your natural gas bill issued by the Gas Natural Fenosa supplier.

Gas Trading Point (GTP)

Virtual French point where the shipper can deliver quantities of gas to another shipper or receive the gas delivered by another shipper.

Gross Calorific Value (GCV)

The amount of heat expressed in kilowatthour produced by the full combustion of one (1) m3(n) of natural gas brought to twenty-five (25) degrees Celsius and an absolute pressure of one point zero one three two five (1.01325) bar with excess air at the same temperature and pressure as the natural gas when the products of the combustion are cooled to twenty-five (25) degrees Celsius and the water formed by the combustion is condensed to the liquid state and the combustion products contain the same total mass of water vapour as the natural gas and the air before combustion.

H gas

Natural gas with a nominal high calorific power of between 11 and 12.5 kWh/Nm3.

Hub

Any place where network users can make natural gas physically available for resale, it being understood that these operations are technically and commercially supported logistically by a service supplier which in particular provides monitoring of transfers of ownership.

Kilowatthour (kWh)

Energy measurement unit used for billing the gas and equating to three point six (3.6) megajoules.

L gas

Gas with low calorific power routed in Belgium. The high calorific power is between 9.5 and 10.5 kWh/Nm3.

Live OTC fixing

Contractual clause included in a supply contract. It relates to customers with an indexed price. The customer wishes to fix a quantity in a given period and requests a quotation from the supplier. The supplier finds the desired volumes in the marketplace and offers the customer the price it has found for an immediate decision.

Logistics

Department of the company in charge of storage capacity reserves and the various stages in the purchase and sale of the natural gas for Gas Natural Europe.

Month ahead

Price of the gas of month M, based on the closing value on the previous month (M-1) in the hub markets.

m³(n)

The quantity of dry gas that, at a temperature of 0°C and under an absolute pressure of one point zero one three two five (1.01325) bar, has a volume of one cubic metre.

Pressure – Temperature – Altitude (PTA) coefficient

Coefficient used to convert cubic metres into standard cubic metres at zero altitude. The variables used to calculate this coefficient are gas distribution pressure, average temperature for the consumption period and the altitude of the site.

Profile

Acknowledged daily distribution curve of the annual consumption of a Metering and Estimation Point. The profile is allocated by the distributor. There are nine different profiles. This information must be shown on your bills.

Standard delivery conditions (SDC)

Contract signed between the distribution network operator and a consumer which sets out the delivery conditions for the gas on site and the technical service conditions. Gas Natural Europe is empowered to sign this contract on behalf of the distributors.

SLP profile

Consumption profile calculated for the end users in the distribution networks as described in the natural gas distribution technical regulations.

Take or Pay

Minimum quantity of gas that the consumer must use in a given period to avoid penalties being applied by its natural gas supplier.

Take or Resell

Consumption commitment clause whereby the supplier resells the gas when consumption does not reach the forecast data.

Target price empowerment

Contractual clause included in a supply contract. It relates to customers with an indexed price. The supplier is “empowered” to fix automatically a quantity in a given period at a price determined in advance as soon as market conditions allow it. The customer is then advised of this move to a fixed price.

Transmission network

Set of transmission facilities together operated by one of the operators or by the same transmission company, excluding upstream facilities and direct pipelines.

Transmission Routing Contract (TRC)

Contract between Fluxys and a charterer for routing services in Belgium, between one or more entry points or one of more delivery points in Belgium.